In May 2013, we made a $24 million mezzanine loan priced at 15.22% to a wholly owned subsidiary of EnergySource LLC ("EnergySource") to be used for a geothermal project. As previously disclosed, in our Form 10-Q for the quarter ended September 30, 2013, it was determined that additional time and equity funding would be required to complete the project's development. On January 2, 2014, we disclosed in an 8-K that EnergySource developed a revised project business plan and budget and was in the process of negotiating third party approvals. In connection with the development of the revised business plan, we agreed to amend the loan agreement whereby approximately $14 million was repaid to us in cash. The remaining outstanding balance after the repayment was $11.8 million. Total interest paid on the loan for the year ended December 31, 2013 was $2.4 million.
We recently became aware that the equity holders (who have already contributed an estimated $31 million in the project) presently do not plan to continue to fund the additional equity investments called for in the revised plan. Although we are assessing various options intended to allow us to recover the balance of our loan, we believe the probability of repayment of our loan in accordance with its contractual terms is in doubt and thus, we have concluded that the loan is impaired, requiring us to establish an allowance for a credit loss of $11 million against the loan. The remaining difference of $0.8 million represents our current estimate of the realizable sale value of tangible project assets.
resposted all over the Yahoo finance---total pumper
Sir Pumpsalot weighs in. So many words with so little substance.
What a bunch of hyped drivel from PT Barnum wannabees. The moderator type with the beard was pathetic--embarrassing performances. They were like high school stage actors.
I sooner buy raffle tickets at the state fair.
wow. you are so far off. CANV is a ponzi scheme at best.
This is easy money for shorts with the cash to stay in the game. Fortunes will be made by shorts--longs will die on the vine.